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Question 3 Auditors provide reasonable assurance that the financial statements are free from material...

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Accounting

Question 3
Auditors provide reasonable assurance that the financial statements are free from material
misstatement, and reasonable assurance is high, but not absolute, assurance. The Messier et
al. text notes that all of the following are inherent limitations that prevent auditors from
providing absolute assurance except:
The need to finish the audit in a reasonable time window
The need to strike a balance between benefits and costs of incremental levels of assurance from a
financial statement audit
The limited industriousness of auditors
The complex nature of financial reporting
The imperfect nature of auditing procedures
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